Mixed taxation, public goods and transboundary externalities: a model with large jurisdictions
2008 (English)Report (Other academic)
This paper concerns income taxation, commodity taxation, production taxation and public good provision in a multi-jurisdiction framework with transboundary environmental damage. We assume that each jurisdiction is large in the sense that its government is able to influence the world-market producer price of the externality-generating commodity. The decision-problem facing the government in each such jurisdiction is represented by a two-type model (with asymmetric information between the government and the private sector). We show how the possibility to influence the world-market producer price adds mechanisms of relevance for redistribution and externality-correction which, in turn, affect the domestic use of taxation and public goods. Finally, with the noncooperative Nash equilibrium as a reference case, we consider the welfare effects of policy coordination.
Place, publisher, year, edition, pages
Umeå: Umeå universitet , 2008. , 46 p.
Umeå economic studies, ISSN 0348-1018 ; 747
trade and environment, optimal taxation, externalities
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-3621OAI: oai:DiVA.org:umu-3621DiVA: diva2:142410